Real estate investment professional Ben Roper is highlighting the growing adoption of UPREIT transactions as a strategic alternative to traditional multifamily property exits. Roper, who specializes in real estate investment trust growth and Section 721 exchanges, works with multifamily owners exploring long-term, tax-efficient transition strategies.
"For many owners, the traditional sell-or-hold decision is too limiting," Roper said. "UPREITs introduce a third option — one that allows owners to maintain economic exposure, defer capital gains taxes, and diversify risk without stepping away entirely." UPREIT structures, historically associated with large institutional platforms, are becoming more accessible to private multifamily owners seeking sophisticated solutions for succession planning, portfolio diversification, and long-term income generation.
Roper has supported multiple successful third-party UPREIT contributions, working directly with unaffiliated owners to structure tax-efficient transitions. "These aren't theoretical structures anymore," Roper said. "We're seeing owners actively choose UPREITs because they solve real problems — taxes, concentration risk, estate planning, and timing." This activity coincides with broader industry trends, as evidenced by Capital Square's record year in 2025, where Roper focuses on strategic REIT growth initiatives. The firm surpassed $1 billion in dispositions and executed a record number of UPREIT transactions, with Capital Square Housing Trust nearly doubling its gross asset value and completing five UPREIT acquisitions, including multiple third-party, whole-property contributions from unaffiliated owners.
Roper notes that multifamily owners face common challenges as assets mature: large embedded capital gains, rising operational complexity, and uncertainty around reinvestment timing. An UPREIT transaction allows an owner to contribute property to a REIT in exchange for operating partnership units, offering several potential benefits including tax deferral under Internal Revenue Code Section 721, continued participation in real estate upside through REIT ownership, portfolio diversification beyond a single asset or market, potential liquidity over time rather than a single exit event, and estate and succession planning flexibility. "For owners who have spent years building value, the question becomes how to transition intelligently," Roper said. "UPREITs allow them to step back operationally while staying invested economically."
Roper emphasizes that UPREIT transactions require patience, education, and alignment, and are not appropriate for every situation. "These conversations take time," he said. "You have to understand an owner's tax profile, timeline, and priorities before even discussing structure." His role often involves engaging owners months in advance, helping them evaluate whether an UPREIT aligns with their long-term objectives. "Trust matters," Roper said. "People aren't looking for a pitch. They're looking for someone who understands the trade-offs and can execute when the time is right."
As interest rates, market cycles, and tax policy continue to evolve, Roper believes UPREITs will play an increasingly important role in the multifamily exit landscape — particularly for owners seeking alternatives to taxable sales or 1031 exchanges. "UPREITs aren't about timing the market," he said. "They're about aligning structure with intent." Roper encourages multifamily owners to begin learning about structured exit options well before a sale becomes imminent. "The best outcomes happen when owners plan early," he said. "That's when you have the most flexibility."
